Dividend-paying stocks that appear to be in a good position to raise their payouts. To identify these firms, we looked for Canadian companies that are paying out a lot in dividends and that have recently hiked their payouts, but still have sufficient earnings and cash flow to further expand their yield.
Craig McGee, senior consultant at CPMS Morningstar Canada, filtered the Canadian CPMS database for S&P/TSX composite stocks that met three criteria. First, the total of each stock’s expected regular dividends on common stock for the next four quarters had to be greater than $100-million. Second, each stock’s expected yield had to be greater than 2 per cent. Finally, the change in expected versus trailing dividends for each stock had to be greater than 1 per cent.